If a USCompany Is Preparing a Journal Entry for a Recent Purchase,foreign-Currency-Denominated

question 25

Multiple Choice

If a U.S.company is preparing a journal entry for a recent purchase,foreign-currency-denominated purchases must be measured in ________ at the purchase date using the foreign currency ________ rate on the purchase date.

• A)foreign currency; spot
• B)foreign currency; future
• C)U.S.dollars; forward
• D)U.S.dollars; spot

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Definitions:

Insight

The capacity to gain an accurate and deep intuitive understanding of a person or thing, often resulting in a sudden clear solution to a problem.

Emotional Responses

Reactions that involve feelings and mood changes as a response to a particular stimulus or situation.

Conditioned

A learned response to a previously neutral stimulus, resulting from repeated association with a stimulus that elicits a natural response.

Acquisition Behavior

The process by which individuals learn to acquire new information or behaviors through observation, conditioning, or practice.